Bank loans

Ind Ra rates the bank loans offered by Adani Power at “IND provisional A/positive”

India Ratings and Research (Ind-Ra) has rated the bank loans offered by Adani Power Limited (APL) at “IND A Provisional”/Positive.

According to the rating justification report, APL is in the process of merging six operating entities which are Adani Power (Mundra) Ltd. (APMuL), Adani Power Maharashtra Ltd. (APML), Adani Power Rajasthan Ltd. (APRL), Udupi Power Corporation Ltd. (UPCL), Raipur Energen Ltd. (REL) and Raigarh Energy Generation Ltd. (SET) itself.

Special purpose development entities, namely Adani Power (Jharkhand) Ltd. (APJL) and Mahan Energen Ltd. (MEL), will remain wholly-owned subsidiaries of APL.

APL’s objective in merging the entities is to achieve greater financial flexibility, cash flow fungibility, efficient use of working capital facilities, economies of scale, counterparty diversification and cushion the impact of a single plant on overall finances.

Ind-Ra therefore adopted a consolidated view of the merged entities and the two subsidiaries to arrive at APL’s ratings.

As of 12:27 p.m., Adani Power Ltd is currently trading at Rs402.95 per share, up Rs13.2 or 3.39% from its previous close of Rs389.75 per share on BSE.

For comments and suggestions, email us at [email protected]